AI Adoption Is Surging – But Only 1 in 5 Employees Say Expectations Are Very Clear

• Nearly 9 in 10 (87%) employees are using AI at work, but only 1 in 5 say leadership expectations are very clear
• 41% are concerned their role could be made redundant, while half feel pressure to work harder to prove their value
• Shadow AI use remains a risk: 29% are using a mix of approved and non-approved AI tools, and 12% are unsure what’s officially approved

3 March 2026 – AI use is rapidly becoming standard practice across Australian workplaces, but new research from the latest ELMO Employee Sentiment Index (ESI) reveals a growing disconnect between adoption and clarity.

The report, covering October to December 2025 and surveying more than 1,000 Australian employees, found 87% employees in AI-enabled workplaces are already using AI in their day-to-day tasks.

Yet only 19% say leadership expectations around AI use are clear. A further 25% say expectations are somewhat clear, while half of employees are either neutral or unclear, suggesting usage may be outpacing alignment.

Many employees also report limited support. Only 14% feel strongly supported to use AI responsibly and effectively, with 45% reporting limited support and 5% saying they’re not supported at all.

ELMO Software President, Joseph Lyons, said the findings highlight a defining leadership moment.

“AI is no longer being trialled quietly in the background; it’s now completely transforming how work gets done,” Lyons said. “But when expectations aren’t clearly articulated, including the skills and capabilities people need to use AI effectively, employees are left to interpret what responsible and productive use looks like. In a fast-moving environment, clarity from leadership matters as much as the technology itself.”

Optimism rising alongside job security pressure

Despite widespread adoption, employees are balancing optimism with caution.

Seventy-two per cent believe automation or AI will help them in their role. However, 41% are concerned their role could be made redundant, and half (50%) say they feel pressure to work harder or longer hours to keep their job secure. Nearly one in three (31%) believe their role could be replaced by automation or AI within the next five years.

“These results show a workforce that sees opportunity in AI, but also uncertainty,” Lyons said. “The organisations that lead well through this intense period of change will be those that prioritise workforce design, defining skills needed early, building capability at pace, and communicating clearly how roles will evolve alongside technology.”

Shadow AI remains a risk as guardrails lag

The research also points to a growing governance challenge. While 41% of employees rely exclusively on approved AI tools, nearly one in three (29%) are using a mix of approved and non-approved tools. A further 5% say they use only non-approved tools, and 12% are unsure which tools are officially approved within their organisation.

This rise in “shadow AI” reflects how quickly tools are being adopted, often faster than policies and guardrails are formalised.

“Employees are motivated to work smarter, but if approved pathways aren’t visible, people will experiment independently,” Lyons said. “Leaders need to set the tone early, not by restricting innovation, but by guiding it.”

From adoption to impact

Among employees using approved tools, just over half (51%) say they are effective for both day-to-day tasks and decision-making, indicating many organisations are still moving from experimentation to measurable value.

At the same time, 14% of employees report their organisation is not currently using AI and has no plans to introduce it. Given the pace of adoption across the broader economy, this may reflect a visibility gap rather than a complete absence of strategy, underscoring the need for clear roadmaps and executive alignment.

As AI becomes embedded in core workflows, organisations will be judged not just on how quickly they deploy new technology, but on how effectively they connect it to workforce capability, compliance and decision-making.

As the Complete AI Workforce Platform for Australia’s mid-market, ELMO unifies HR, payroll and rostering on a single data foundation and embeds AI directly into core processes – rather than layering it on as an afterthought.

In the race to adopt AI, the advantage will belong to organisations that prioritise clarity and connection to turn AI ambition into measurable workforce impact.

About ELMO Software 

Founded in 2002, the ELMO Group comprises ELMO Software, Breathe HR and Rotageek. ELMO Group is a multinational provider of people management solutions, trusted by over 18,000 organisations across Australia, New Zealand and the United Kingdom.

ELMO is The Complete AI Workforce Platform™. It unifies HR and Payroll on one connected data foundation and layers native AI to turn workforce data into insight and action. ELMO’s mission is to get Australia and New Zealand’s workforce ready for what’s next and supports the full employee lifecycle, from recruitment and onboarding to learning, performance, payroll and more.

Backed by ISO-certified security, Australian-based data hosting and local experts who guide change throughout the journey, ELMO helps mid-sized organisations build the foundation for AI-ready workforces of tomorrow.

For more information, visit www.elmosoftware.com.au  or follow ELMO Software on LinkedIn.

About the ELMO Employee Sentiment Index

The ELMO Employee Sentiment Index offers a quarterly pulse check on the actions, attitudes and behaviours of Australian employees. It tracks changes in perceptions around job security, wellbeing and the economy, as well as topical issues impacting Australian employees.

The research was commissioned by ELMO Software and conducted by YouGov. 1,055 Australian employees were surveyed online, aged 18-64 (excluding self-employed employees) between 5 and 13 January 2026. Respondents were asked to reflect on the three-month period between October 2025 and December 2025.

Respondents were members of a permission-based panel, geographically dispersed throughout Australia including both capital city and non-capital city regions. After surveying, the data was weighted to the latest population estimates sourced from the Australian Bureau of Statistics.